What AI bubble? Grading Nvidia’s Q3 earnings report based on 3 main factors

Nvidia’s earnings have become like a quarterly Super Bowl for the stock market.

Traders don’t have to be invested in the stock to tune in — they’re simply there to soak in the spectacle, and appreciate a company at the top of its game. They also realize that something could occur that alters the trajectory of the entire market, and they don’t want to miss it.

So when Tom Brady Jensen Huang discussed Nvidia after its latest earnings report, ears everywhere perked up. This was especially the case after the company — in typical fashion — smashed expectations. The main highlight was a sales-forecast hike for the fourth quarter.

But there are more layers than that. In order to give the most accurate possible assessment, I narrowed down the three main questions facing the firm, and my level of satisfaction with the answers provided. That “satisfaction score” is given on a scale from 1 to 10, with 30 marking a perfect report.

Here’s the rundown:

Question 1: Is AI spending going to stay strong enough?

What happened:

CEO Jensen Huang pulled no punches out of the gate, attacking this question with fervor.

“Blackwell sales are off the charts, and cloud GPUs are sold out,” he said. “Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We’ve entered the virtuous cycle of AI.”

The company’s better-than-expected revenue forecast for the fourth quarter also signaled immense demand, especially…